NRAM Debt c.2010 now being chased by Drydens

[g40_boy]

Hi to all. 

I haven't needed to post for a while, however this site has proven very helpful in the past, so I thought I would see if there is any help that anyone may be able to give.

 

I don't have exact dates to hand, but I will see if I can find them if it is needed. 

 

I handed keys back to a property late 2009, mortgage with Northern Rock, together with the loan. (Together Mortgage). 

The house was sold by them early 2010 but with a shortfall of approx. £49,000.

Since this time, I have managed to improve my finances, and I now have a new mortgage and good credit history, with no arrears. 

 

Approx 6 months ago I received a letter from NRAM which I queried with them by telephone, clearly stating that I did not owe the debt, and that I believe that they are unable to chase for any debt after nearly 10 years under the rules laid down by the council of mortgage lenders. 

 

Nothing further was received for about 3 months, which was just another letter from NRAM asking for repayment of the shortfall. 

I again queried the debt and made it clear I did not owe the sum requested, nothing further was received. 

 

Today, I have received a letter from drydensfairfax solicitors, a 'letter of claim' and that they are instructed by their client NRAM. 

I suspect that they have just bought the debt and are trying their luck, however before I write to them, can anyone advise where I stand?

 

If I received a letter soon after the house was sold and the shortfall amount was known, does this count as recovery action, which then means that the CML rules relating to 6 years are null and void?  Or does recovery action have to be just that?

 

Any advice greatly appreciated!

[AndyOrch]

What does the letter of claim state ?

[dx100uk]

drydens don't buy anything they only act for clients and a you state they are NRAM?

 

 

[g40_boy]

The letter of claim states that it is sent in accordance with the Pre-Action Protocol for Debt Claims.  They are instructed by their client, NRAM Ltd in respect of a debt owing to it by you  (me). In the event that I do not provide proposals for the repayment of the debt, or respond as otherwise detailed in the letter and attachments, legal proceedings may be issued against me in the County Court.

 

Full details as follows:

• The amount owed is £49407.28
• No charges or interest are being added to the debt at this stage
• The debt relates to a mortgage shortfall in respect of **** property.  The property was taken into possession and sold, but the money realised from the sale of the property was insufficient to redeem the mortgage, resulting in the shortfall

There is a income/expenditure attachement, along with an appendix asking me to choose between admitting the debt through to not, and options inbetween.

 

While the debt they are chasing relates to a house I previously owned, and there was a mortgage shortfall, my main query relates to the information from the CML which states that recovery action should be commenced within 6 years of the shortfall/default occuring.  I do not believe that the debt is enforceable after this time, however I am seeing if anyone has dealt with similar, or has advice to the contrary.

They have not sent any account information relating to the debt.

 

 

[dx100uk]

shortfall is 12yrs for the capital investment 

 

I will assume you didn't inform NRAM of you new address since that time so have received anything else to date until Drydens traced you via your credit file ..

 

 

 

 

[g40_boy]

I cannot remember, but I certainly think I gave Northern Rock my new address when I first moved.  I don't recall informing them of subsequent moves.  I have however always been on the electoral roll and had credit which can be traced back.

My main query is relating to the voluntary code with the council of mortgage lenders, relating to the commencement of proceedings within 6 years.  I have not been hiding, nor have I ignored any contact.  I have always had redirection for 2 years following any move, and have not missed any correspondence.  And why has it taken 9 years to contact me, when I have lived at my current address with a mortgage for nearly 5 years...

 

There is a template on this site "lenders should not pursue under CML policy" which can be printed and sent to the lender/debt collector.  From the reading/research I have done, I think I fall into this category, however I was seeking clarification.

Edited August 22, 2019 by g40_boy

[dx100uk]

Looks to me like youve taken reasonable steps to ensure you got mail

so yes there should be a letter in the mortgage section of our library

and you could send that to drydens in reply to the pap loc they send which you must reply to with in 30days

 

Dx

[g40_boy]

An update to this...

I sent the template letter about CML lenders not chasing after the 6 year timeframe,

 

I have received a letter from NRAM (I wrote to NRAM and DrydensFairfax)

 

- The long and short of it is that I signed a form PRIOR to the voluntary surrender of the property and keys. 

The form states that I am aware that I will be chased for any shortfall once the sale of the property is complete. 

 

I also gave a forwarding address on the form, so there was no excuse that NRAM/ Northern Rock could not contact me after the sale (I lived there for 4 years, and then any mail was redirected for 2 years to my next address, so covering the 6 year period from giving up the house). 

 

As they have not chased the debt until now, would the CML rules apply here? 

The form is dated October 2009. 

They have not provided copies of letters chasing the debt prior to this point.

What would be the best course of action as they have ignored the letter I have sent them regarding the CML rules which they were a signatory to!

 

Regards

[Will Goodfellow]

The equivalent of Council of Mortgage Lenders handbook is now the Mortage Conduct of Business (MCOB) sourcebook, CML was very similar:

 

"MCOB 13.6.3

 

(1) If the decision is made to recover the sale shortfall, the firm must ensure that the customer is notified of this intention.

 

(2) The notification referred to in (1) must take place within five years of the date of the sale (if the regulated mortgage contract or home purchase plan is subject to Scottish law) or within six years (in all other cases)."

 

https://www.handbook.fca.org.uk/handbook/MCOB/13/6.html

 

NRAM appears to be relying on the fact you signed the form acknowledging you will be pursued for the shortfall, therefore it adhered to the CML/MCOB as it did notify you within 6 years of an intention to recover the shortfall. A judge will ultimately decide if that is sufficient notice of intention if you defend the claim on the grounds that it isn't.

 

As you now have an asset which NRAM is probably aware of, it may be worth making a claim against you, whereas previously it wasn't.

Edited September 8, 2019 by Will Goodfellow
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[dx100uk]

still 10yrs later

just because you signed that letter in 2009 means stuff all.

 

dx